Enterprise Group PLC, a Ghanaian financial services conglomerate, posted an 89.7% surge in consolidated net profit to GHS 366.5 million for the year ended December 31, 2024, according to its audited financial statements.
The group’s robust performance was driven by growth in insurance revenue and investment income, alongside prudent cost management.
Total assets expanded by 29.5% to GHS 3.93 billion, fueled by a 44% increase in investment securities to GHS 2.42 billion and a 25.7% rise in insurance contract liabilities to GHS 1.63 billion. Cash reserves rose to GHS 1.3 billion, though liquidity was partly directed toward acquisitions, including GHS 146.6 million in investment securities and GHS 36.6 million in property upgrades.
Insurance revenue climbed 30.5% to GHS 1.58 billion, while net insurance service results improved to GHS 272.6 million, up 43% year-over-year. Investment income grew modestly to GHS 297.4 million, bolstered by a GHS 133.6 million fair value gain on investment properties. Operating expenses rose 21.3% to GHS 300.9 million, reflecting expanded operations, but efficiency gains helped maintain profitability margins.
The parent company’s standalone profit dipped slightly to GHS 52.2 million from GHS 54.1 million in 2023, attributed to higher finance costs and a GHS 16.6 million dividend payout, up 30% from the prior year. Group-wide dividends to non-controlling interests totaled GHS 23.1 million, underscoring subsidiary performance in sectors like pensions and real estate.
Shareholder equity for the group increased to GHS 1.55 billion, with retained earnings rising to GHS 698 million. A strengthened contingency reserve (GHS 180.5 million) and statutory reserve (GHS 21.5 million) highlighted strategic reinvestment. Foreign currency translation impacts remained minimal, with a GHS 2.6 million gain easing prior losses.
Cash flow from operations surged 63% to GHS 753.3 million, enabling debt reduction and strategic investments. However, net cash outflow from investing activities reached GHS 184.5 million, signaling aggressive portfolio expansion.
The auditor’s report by PricewaterhouseCoopers affirmed compliance with International Financial Reporting Standards (IFRS), noting no material misstatements. Directors emphasized adherence to risk management frameworks amid Ghana’s stable macroeconomic climate, which avoided hyperinflation adjustments under IAS 29.
Enterprise Group’s results reflect its dominance in Ghana’s insurance and investment sectors, though rising liabilities and competitive pressures pose challenges. Analysts will monitor how the company balances growth initiatives with shareholder returns in 2025, particularly as it navigates regulatory shifts and market volatility in West Africa’s financial landscape.
